Nexgen Energy Stock Market Value
| NXE Stock | CAD 8.11 0.08 1.00% |
| Symbol | NexGen |
NexGen Energy Price To Book Ratio
NexGen Energy 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to NexGen Energy's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of NexGen Energy.
| 03/04/2024 |
| 08/31/2024 |
If you would invest 0.00 in NexGen Energy on March 4, 2024 and sell it all today you would earn a total of 0.00 from holding NexGen Energy or generate 0.0% return on investment in NexGen Energy over 180 days. NexGen Energy is related to or competes with Fission Uranium, Denison Mines, Energy Fuels, and EnCore Energy. NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluatio... More
NexGen Energy Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure NexGen Energy's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess NexGen Energy upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.16) | |||
| Maximum Drawdown | 20.61 | |||
| Value At Risk | (4.81) | |||
| Potential Upside | 3.95 |
NexGen Energy Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for NexGen Energy's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as NexGen Energy's standard deviation. In reality, there are many statistical measures that can use NexGen Energy historical prices to predict the future NexGen Energy's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.53) | |||
| Total Risk Alpha | (0.85) | |||
| Treynor Ratio | (0.33) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of NexGen Energy's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
NexGen Energy Backtested Returns
NexGen Energy has Sharpe Ratio of -0.1, which conveys that the firm had a -0.1% return per unit of risk over the last 3 months. NexGen Energy exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify NexGen Energy's Risk Adjusted Performance of (0.09), mean deviation of 2.22, and Standard Deviation of 3.13 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 1.21, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, NexGen Energy will likely underperform. At this point, NexGen Energy has a negative expected return of -0.32%. Please make sure to verify NexGen Energy's potential upside, daily balance of power, as well as the relationship between the Daily Balance Of Power and market facilitation index , to decide if NexGen Energy performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.11 |
Insignificant reverse predictability
NexGen Energy has insignificant reverse predictability. Overlapping area represents the amount of predictability between NexGen Energy time series from 4th of March 2024 to 2nd of June 2024 and 2nd of June 2024 to 31st of August 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of NexGen Energy price movement. The serial correlation of -0.11 indicates that less than 11.0% of current NexGen Energy price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.11 | |
| Spearman Rank Test | -0.27 | |
| Residual Average | 0.0 | |
| Price Variance | 0.61 |
NexGen Energy lagged returns against current returns
Autocorrelation, which is NexGen Energy stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting NexGen Energy's stock expected returns. We can calculate the autocorrelation of NexGen Energy returns to help us make a trade decision. For example, suppose you find that NexGen Energy has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
NexGen Energy regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If NexGen Energy stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if NexGen Energy stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in NexGen Energy stock over time.
Current vs Lagged Prices |
| Timeline |
NexGen Energy Lagged Returns
When evaluating NexGen Energy's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of NexGen Energy stock have on its future price. NexGen Energy autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, NexGen Energy autocorrelation shows the relationship between NexGen Energy stock current value and its past values and can show if there is a momentum factor associated with investing in NexGen Energy.
Regressed Prices |
| Timeline |
Pair Trading with NexGen Energy
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NexGen Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NexGen Energy will appreciate offsetting losses from the drop in the long position's value.Moving against NexGen Stock
| 0.81 | MNT | Royal Canadian Mint | PairCorr |
| 0.73 | ENS-PA | E Split Corp | PairCorr |
| 0.72 | ENS | E Split Corp | PairCorr |
| 0.6 | CYB | Cymbria | PairCorr |
| 0.54 | ENB-PFV | Enbridge Pref 5 | PairCorr |
The ability to find closely correlated positions to NexGen Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NexGen Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NexGen Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NexGen Energy to buy it.
The correlation of NexGen Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NexGen Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NexGen Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NexGen Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Information and Resources on Investing in NexGen Stock
When determining whether NexGen Energy is a strong investment it is important to analyze NexGen Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact NexGen Energy's future performance. For an informed investment choice regarding NexGen Stock, refer to the following important reports:Check out NexGen Energy Correlation, NexGen Energy Volatility and NexGen Energy Alpha and Beta module to complement your research on NexGen Energy. To learn how to invest in NexGen Stock, please use our How to Invest in NexGen Energy guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
NexGen Energy technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.